Why were we refused..???

schoolrunmum

Currently have a small mortgage (65k against property value of 700k),and wanted to change for a better deal. We were refused-despite having excellent income (150k), and absolutely NO other debts,no credit cards owing ,car loans etc, nada....
Have checked Experian, and we have an old default on there from 2005 (it was my BIL who took out a car in DH name,then defaulted. We foolishly paid it for him thinking it was for the best).It does show as settled now. Other thing is, DH often uses CC to take cash out of ATM-He travels abroad 3-4 times a month and sometimes thats' the only card that'll work..(you try calling your bank at 4am on a mobile from Singapore....!) Could this be why we were refused??How can we fix this? Thanks is advance..

herbiesjp

MOre likely to be the default

How much was it for?

However, based on those figures you would be able to argue a good case - or a least a broker might?

Who is your current lender?
Which lender declined?

schoolrunmum

herbiesjp wrote: »

MOre likely to be the default

How much was it for?

However, based on those figures you would be able to argue a good case - or a least a broker might?

Who is your current lender?
Which lender declined?

Only about £350 Herbie. Not even our debt (I hadn't discovered MSE then-I would do things differently next time!)
Current lender Halifax,trying to move to Co-Op...

herbiesjp

That isnt exactly a tremendous amount

I doubt Co-Op will budge though.

There may be other high street lenders who could help - but I would get a whole of market adviser to do this, as you would need them to explain the scenario to the lender first, and not run numerous credit checks.

Have you seen what Halifax can offer? Are they not close in terms of deals for you?

schoolrunmum

No,they weren't really interested in matching it...thats' whats worrying me..doing loads more searches while we look for another lender...

herbiesjp

schoolrunmum wrote: »

No,they weren't really interested in matching it...thats' whats worrying me..doing loads more searches while we look for another lender...

Didnt necessarily mean match the Co-Op deal, as lenders do not do that, but if they were close enough in terms of the deals on offer, you could stay with them

The only way you will find out though, is by compring against other lenders, which is exactly what you are doing

Mrs_Bumble

Didnt necessarily mean match the Co-Op deal, as lenders do not do that, but if they were close enough in terms of the deals on offer, you could stay with them

One benefit of staying with existing lender is no legal costs involved and usually no valuation costs so these have to be factored into whether a deal is worth considering.

Co-op definitely won't budge on the default front, squeaky clean for them only!

As herbiesjp says above best advice is to see how close Halifax will get to whatever was offered or speak to a good, independent, whole of market broker, who maybe able to place you with another lender despite the default.

serbask

Why dont you see what London and country or another free broker can get for you. No fee so nothing to loose.

schoolrunmum

Will do,thanks for the advice..might also try having the default removed...does anyone know if that's possible?t

herbiesjp

If the default was in your OH name then it will have to stay I'm afraid

schoolrunmum

Yes it was,but when he first contacted DCA,and explained situation,the advisor said if we paid in full immediately, it wouldn't register a default. Of course, this was all via phone, not in writing,and surprise surprise, they registered the default-although it shows settled...it seems to be putting people off.Does it stay there for 6 years?